Definition of 'Cost Benefit Analysis
It can be explained as a procedure for estimating all costs involved and possible profits to be derived from a business opportunity or proposal.
Cost Benefit Analysis (CBA) is a method of appraising large scale investment projects, often involving public spending, such as rail links, motorways, and airports. The process involves estimating all the perceived private and external costs and benefits of alternative spending options, such as alternative sites for a new airport, and then selecting the option with the highest net benefit.
Introduction to Cost Benefit Analysis. (n.d.). Retrieved September 07, 2017, from http://slideplayer.com/slide/2543307/